Latin America Advisor, June 2025
The U.S. Department of Energy (DOE) announced May 21 that it will “redirect” $365 million earmarked for future solar energy projects to grid repairs and emergency oil power capacity in Puerto Rico. The U.S. territory has experienced at least two island-wide blackouts since December. How might the redirecting of funds for solar energy affect Puerto Rico’s ability to prevent and respond to major power outages? To what extent will the move affect the territory’s transition away from fossil fuels in the power sector in the long term? What does the decision reflect about the nature of the U.S. government’s relationship with Puerto Rico, now nearly five months into the second term of President Donald Trump?
Laura Kuhl, associate professor at the School of Public Policy and Urban Affairs and International Affairs Program at Northeastern University: “The decision to redirect solar investments in Puerto Rico toward hardening the grid and increased investments in fossil fuels represents a significant setback for Puerto Rico’s energy transition.”
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